Todd Walock

Todd Walock

Todd Walock

What Does It Mean to Be a First-Time Home Buyer?

Being a first-time home buyer can be an exciting but anxious time. Educating and preparing yourself about buying your first home is the best way to calm those nerves, and to do that, you don’t have to look any further.

A first-time buyer is someone who meets any of the following criteria:

An individual who has not had ownership of a principal residence for at least 3 years.

A single parent who has only owned with a former spouse while married.

An individual who is a displaced homemaker and has only owned with a spouse.

An individual who has only owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations.

An individual who has only owned a property that was not in compliance with state, local or model building codes and which cannot be brought into compliance for less than the cost of constructing a permanent structure.

How Do I Know If I'm Ready To Own a Home?

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What Type of Loan is Right For Me?

Navigating the range of home loans to find one that best meets your needs can be a difficult process, especially for first-time home buyers. To make things easier, the federal government and the state of Minnesota offer insured home loans tailored to first-time home buyers. These loans offer attractive benefits that can make the home-buying experience less costly and less restrictive. First-time home buyer loans typically offer a lower down payment, reduced interest, limited fees and the possibility of deferring payments. These types of loans are offered at a federal level by the Federal Housing Administration and by most states. The FHA defines a first-time home buyer as a person who has never owned a home or has not owned a home for at least three years. The comparatively lower restrictions on these loans make them ideal for first-time home buyers.

Popular Home Loan Options For First-Time Home Buyers:

You might want to consider these loans if:

You don’t have enough money saved up for a large down payment.

You have a limited ability to meet high interest payments and fees.

Your credit score is not high enough to qualify for other loan types.

Even if you do have funds saved for a large down payment, the low interest rates on first-time home buyer loans could be too good to pass up. Contact our mortgage expertto determine which loan program is right for you and start the pre-qualifying process.